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SPDR Gold Shares (GLD ETF)

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Gold Trading - Alerts

If you're interested in gold trading or silver trading and would like to learn how to trade gold and how we apply our gold trading tips, you've come to the right place. The Gold & Silver Trading Alerts are the daily alert service provided by Przemyslaw Radomski, CFA that deals directly with the latest developments on the precious metals market. The situation is analyzed from long-, medium-, and short-term perspectives and topics covered go well beyond the world of precious metals themselves, ranging from the analysis of currencies, stocks, ratios, as well as using proprietary trading tools. Subscribers also receive intra-day follow-ups in case the market situation requires it. 1-2 alerts per week are posted also in our Articles section, so you can review these real-time samples before you subscribe.

Whether you already subscribed or not, we encourage you to find out how to make the most of our alerts and read our replies to the most common alert-and-gold-trading-related-questions.

Remember how mining stocks soared on Valentine’s Day and how we wrote that a rally was not necessarily bullish? Guess what – this rally has been more than erased. Miners not only closed below the February 14th opening price, but also below the February 13th and 12th closing prices. The mining stocks’ big rally turned out to be nothing more than just a regular 50% retracement during a decline – something that we saw many times in the past and that we had described as likely. But, since the rally was rather inconsequential, then perhaps the decline is inconsequential as well?

The USD Index moved to new lows on Friday and when almost everyone (not us) assumed that it was breaking below the key support levels, it rallied back up, closing the week above the key long-term support levels. The rally continues also today confirming the bullish nature of Friday's action. Those who paid attention to long-term factors were well positioned for this action and are profiting from today's decline in the precious metals market instead of being surprised by it. Are you?

“Not much happened yesterday” – one might say after looking briefly on gold, silver and mining stocks’ charts. And they would be correct. But they would probably miss the key three developments that indeed happened yesterday outside of the precious metals sector that can have enormous impact on its short-term direction. What are they?

Tuesday’s session was accompanied by volume that was the lowest this year, at least in gold. Yesterday’s volume was definitely not in line with that. We saw one of the biggest daily volumes of 2018 in gold, silver and mining stocks as the entire sector soared. It’s a clear buy signal in the eyes of many. But should something that appeals to almost everyone be automatically viewed as appealing?

In the final part of his 7th letter to Lucilius, Seneca writes the following:

Lay these up in your heart, my dear Lucilius, that you may scorn the pleasure that comes from the majority’s approval. The many speak highly of you, but have you really any grounds for satisfaction with yourself if you are the kind of person the many understand? Your merits should not be outward facing.

Answering our previous question: no – in the case of investments, the fact that something is popular or commonly viewed as something is definitely not enough to blindly accept it. We’ll analyze the situation thoroughly without telling the market what it should be doing in light of either popular beliefs, or our own trading positions. This way, we’ll get to the best conclusions. So, what's really in store for gold for the coming days and weeks?

The general stock market stole the spotlight just a few days ago and the consequences of the big decline and the subsequent upswing have not yet fully played out. The S&P 500 is in a very tense situation, which is particularly important for us – precious metals investors – because the way in which stocks will move is likely to determine the way in which mining stocks will move. How to tell what’s going to happen and how to position oneself to profit on this situation? One of the key clues comes from the place where one might not expect it. From the Japanese yen.

Gold, silver and mining stocks finally rallied yesterday. The upswing continues in today’s pre-market trading as the USD Index is testing the 90 level, moving a bit below it. That’s the first real rally that we saw this month. The key question is – have we just seen the 2018 bottom?

The huge decline in mining stocks along with the general stock market was the key event of Friday’s session. The only thing that was more interesting, was the subsequent rebound. Main stock indices ended the session higher, the GDX reversed the entire decline, and the HUI and XAU indices corrected only half of the previous decline. Gold and silver were mostly unmoved. What should one make of all this?

The mining stocks declined in their usual way yesterday, but there's little else that they could do in light of a big slide on the general stock market. However, gold and silver moved higher, and the shape of yesterday's session might appear as a reversal to some. Did we really see one? There's one reliable factor that can help us determine it.

Taking on the biggest short position ever based on the Jan 26th session certainly proved to be a good and profitable idea, especially in the case of silver and mining stocks. However, it doesn’t mean that the precious metals sector is going to decline indefinitely – there will be a major bottom and even before it is seen, there will be corrective upswings along the way. Some of them will be very tradable opportunities to increase the profits. Where’s the best nearby opportunity to switch from short to long positions?

The price of no asset can move up or down in a straight line, so why should mining stocks be any different? They have been declining relentlessly for almost 2 weeks, erasing more than 10% of their value. Sharp? Definitely. Unsustainable? Perhaps. When will the turnaround take place?

Feb Market Overview

In this edition of the Market Overview, we will examine what the Great Unwind implies for the U.S. dollar and gold. The tightening of monetary policy and higher interest rates could be negative for gold, but more hawkish BoJ and ECB would mean narrower divergence in monetary policies between the Fed and other major central banks.We will answer the question of why the American currency has been falling like a stone recently, despite the Fed’s tightening cycle. We will also explore the historical bull and bear cycles in both gold and the U.S. dollar, as trend in this currency is likely to be the vital driver in the gold market in 2018.